These are duties that are currently provisional but will become definitive in two months. China did the same last week with the duties on European pork imports. Although those were set at a lower rate, they are imposed for a much longer period of several years.
The dairy duty rates range from 21.9% to 42.7%. According to Chinese authorities, the duties are linked to EU subsidies for the European dairy sector. China claims that subsidized EU dairy harms the Chinese dairy industry. No details are given about the extent or nature of that harm.
For instance, the Dutch dairy company FrieslandCampina falls under the products subject to the highest duty. The Italian company Sterilgarda Alimenti is charged the lowest rate.
It is also stated that dairy companies from multiple EU countries are affected, including France, Germany, and Denmark. The measure thus impacts a broad segment of the European dairy sector.
The dairy duties do not stand alone. China places this step within the broader tensions between China and the European Union. The measure is described as part of an escalating conflict.
In this broader context, reference is made to the very large European imports of Chinese electric cars and the restrictions imposed by Brussels on these. The dairy duties are mentioned as a response within that larger issue, in which both parties are pressuring each other with trade measures.
Dairy has thus become a new point of contention. The exact consequences for European producers and the Chinese market remain unclear. It is, however, known that baby milk powder is excluded.